The people who run Red Buck Cigars, manufacturers of filtered cigars in Russell Springs, Kentucky must be able to smell the desperation coming out of Frankfort.
Early in 2009, Congress more than doubled federal cigarette taxes to pay for children’s health care and Kentucky’s bipartisan legislature doubled up their own tax to help cover yet another revenue shortfall. The then-Democratic Congress didn’t think twice about the consequences of funding excessive spending with the diminishing returns of a cigarette tax increase. Most Frankfort politicians didn’t either.
“Sin” taxes are usually easy to pass because they directly hit relatively small constituencies. But fiscal conservatives should stand strong against the coming effort to increase the size of government by creating a new law to wipe out the competitive advantage of a Kentucky manufacturer operating within the law. Put simply, it’s more important than just stopping a tobacco processor from exploiting a loophole in tax law; this is about the power we allow government to have in our lives.
We need less government regulation, not more. We need fewer schemes designed to fund wasteful government. And if we don’t start now, protecting a product we may not like from the nanny staters and big taxers, when are we going to start?
Please tell your representatives we won’t accept more tax increases of any kind and that the solution to their revenue problem is to cut spending and to reduce the size and scope of government.
Kentucky Knows Best
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